PHOENIX, Arizona, May 14, 2021 — TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced that current President Gary Santo will be appointed as the Company’s new Chief Executive Officer (“CEO”), effective June 1, 2021. Current CEO Mark Scatterday will continue to serve as Chairman of the Board and will work closely with Mr. Santo and the senior management team. He will also serve as a special advisor to TILT’s research and development team as they continue to create new technology and product innovations.
“This is an exciting time for TILT and the cannabis industry as consumer adoption and demand continues to accelerate,” said Mark Scatterday, current Chairman & CEO of TILT. “Since joining TILT last year, Gary has been an integral part of our leadership team as he brought a wealth of experience in both cannabis and other highly regulated sectors. His development and implementation of our long-term strategy has been key to our return to growth and profitability. I look forward to continuing to work closely with him, our board and the research and development team.”
Current TILT President Gary Santo added, “It is an honor to become the CEO of such a forward-thinking, innovative company and to work alongside such a talented and passionate team. TILT has been given a rare opportunity in the cannabis sector to have a second act, and the Company has proven its commitment to value creation by divesting unprofitable business segments and repositioning itself to better serve consumers, MSOs, licensed producers and cannabis brands around the globe. These efforts have enabled our robust growth outlook for 2021, which has us nearly doubling adjusted EBITDA to $30-$32 million. As we continue to execute on our growth initiatives, I am excited to lead the team into what promises to be an exciting few years ahead.”
Santo continued, “I’d like to express my deepest gratitude to Mark for this opportunity. Together with our prior President and Chief Operating Officer Tim Conder, Mark successfully stabilized TILT’s foundation during a pivotal transition period for the Company. I look forward to continuing to work closely with him as we lead TILT into its next chapter of growth.”
Mr. Santo was appointed President of TILT in October 2020. Since that time, he has solidified TILT’s B2B strategy, executed on strategic distribution and brand partnerships, and made key hires across compliance, marketing and human resources. Mr. Santo brings more than 25 years of experience leading lean, high-performance teams in consumer credit, financial services, gaming and technology, higher education and specialty-pharma. He has held a variety of senior roles at The First Marblehead Corporation, Fitch Ratings, International Game Technology, Lantheus Medical Imaging and most recently, Columbia Care Inc., a leading multi-state operator in the cannabis industry. Santo holds an Investor Relations Charter® certification from the National Investor Relations Institute, as well as a degree in Political Science from Boston University.
TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 36 states in the U.S., as well as Canada, Israel, Mexico, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania and Standard Farms Ohio, LLC in Ohio. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.
Non-IFRS Financial and Performance Measures
In addition to providing financial measurements based on International Financial Reporting Standards (“IFRS”), the Company provides additional financial metrics that are not prepared in accordance with IFRS. Management uses non-IFRS financial measures, in addition to IFRS financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate the Company’s financial performance. These non-IFRS financial measures are EBITDA and Adjusted EBITDA.
EBITDA and Adjusted EBITDA are financial measures that are not defined under IFRS. The Company uses these non-IFRS financial measures, and believes they enhance an investor’s understanding of the Company’s financial and operating performance from period to period, because they exclude certain material non-cash items and certain other adjustments management believes are not reflective of the Company’s ongoing operations and performance. The Company calculates EBITDA as net income (loss), plus (minus) income taxes (recovery), plus (minus) interest expense (income), plus depreciation and amortization expense. Adjusted EBITDA excludes certain one-time non-operating expenses, as determined by management, including stock compensation expense, unrealized gain/loss on changes in fair value of biological assets, fair value changes in biological assets included in inventory sold and business acquisition expense. There are components of fair value of biological assets and other one-time non-operating expenses required for the reconciliation of Adjusted EBITDA to Net Income that are currently in the process of finalization. Therefore, a reconciliation of the range of Adjusted EBITDA to net income will be provided when actual results are released.
Management believes that these non-IFRS financial measures reflect the Company’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparing financial results across accounting periods and to those of peer companies. Management also believes that these non-IFRS financial measures enable investors to evaluate the Company’s operating results and future prospects in the same manner as management. These non-IFRS financial measures may also exclude expenses and gains that may be unusual in nature, infrequent or not reflective of the Company’s ongoing operating results.
As there are no standardized methods of calculating these non-IFRS measures, the Company’s methods may differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similarly titled measures used by others. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.